Top Small cap Funds that outperformed in bull and bear phases
Investors would always like to invest in mutual funds that give higher returns. However, it is almost impossible for anyone to identify a mutual fund scheme that give higher returns in that segment. However, it is very much possible to identify a mutual fund scheme that is consistently performing well compared to its benchmark. How about identifying a mutual fund scheme that outperformed in bull phase? How about identifying a mutual fund scheme that outperformed in bear phase? How about identifying a mutual fund scheme that outperformed in both bull and bear phases? We did some analysis and identified a few small cap mutual fund schemes that outperformed in both bull as well as bear phases.
Also Read: Best IT Mutual Funds to invest for 2019
What are small cap mutual fund schemes?
If you are already aware, skip his section.
Small cap funds are those which invests in companies which are small in size on market capitalization. These Funds invest in equity shares of companies in India, which have smaller capitalization and listed under the 250th rank of the underlying benchmark. These stocks are typically that has high growth potential, however, carries a high risk too.
How we identified small cap funds that outperformed in both bull and bear phases?
In our analysis, we are considering 20% positive returns or 20% negative returns in SENSEX as bull run and bear phase respectively. Here are some of the parameters considered in filtering the best small cap fund that outperformed in bull and bear markets.